- Popular password manager company 1Password announced it raised $200 million in Series A funding led by Accel
1Password — one of the most popular password managers — announced it has raised $200 million in a Series A round of funding led by Accel. And Slack Fund, Atlassian executives, and other notable investors also joined the round.
This is the first time that 1Password took on its first outside investment after 14 years of strong organic growth and profitability in order to scale its Enterprise Password Manager (EPM) globally. Plus 1Password will invest aggressively in product and go-to-market programs to expand its enterprise footprint and enable any company to secure identities and sensitive data.
“We started 1Password to solve a problem we all feel every day: the hassle of creating and remembering complicated passwords to access the apps we need. Companies try to enforce strong password policies with unreasonably complex requirements that people can’t follow or remember. As a result, most of them create schemes to get around these rules by reusing the same password everywhere or adding subtle variations. This puts your employees and businesses at risk,” said 1Password’s CEO Jeff Shiner. “With 1Password, you can be good by being lazy. 1Password creates and remembers complex passwords for you, making it the most secure solution as well as the easiest. Our Enterprise Password Manager removes the frustration employees feel with forgotten passwords while securing employees and protecting their companies.”
1Password has solved one of the biggest problems of managing strong and securing passwords for the online services that we use every day with the highest customer satisfaction ranking of any password manager and top ratings from Trustpilot and G2.
And 1Password helps users create unique, strong passwords, and auto-fills logins for any site or app with a click so they can get more done without remembering or even knowing their credentials.
“Since the start, we’ve been committed to creating a terrific experience, not monetizing eyeballs or tracking users,” added David Teare, 1Password co-founder. “We’ve built a passionate customer base by respecting privacy, listening to feedback and making a security product that people love to use. That’s created a virtuous cycle where customer feedback keeps us ahead of the game by highlighting the latest services users want, from Face ID to Slack integrations to the next big platform.”
There are 50,000 paying business customers across diverse industries, including 25% of the Fortune 100 that rely on 1Password’s Enterprise Password Manager to help employees maintain strong credentials, manage access to services, and report on usage. In one major rollout with a Fortune 50 client, there were 50,000 employees actively using the platform in just two weeks. And in the past two years, 1Password’s enterprise business has grown over 300% and now comprises of a majority of the company’s revenue.
With this round of funding, 1Password will expand its EPM deeper into the enterprise, helping businesses prevent breaches, reclaim time spent guessing or resetting passwords, and better understand the online services employees use thus resulting in reduced IT demands.
“We don’t come across companies like 1Password very often, especially in an era of growth at all costs,” explained Arun Mathew, partner at Accel. “Like Atlassian and Qualtrics, the 1Password team impressed us by building a business that’s not only scaling extremely quickly but also has been profitable since day one–and that’s why today we’re making the biggest single investment in Accel’s more than 35-year history. 1Password’s Enterprise Password Manager complements existing Single Sign-On and Multifactor Authentication technologies, adding a foundational layer to the Identity & Access Management stack. The company has created a powerful and sticky product that people and businesses rely on every day to protect sensitive data, intellectual property and brand value.”
Some of the notable angel investors who joined this round include Atlassian founders & co-CEOs Scott Farquhar and Mike Cannon-Brookes, Atlassian president Jay Simons, and former Google CISO Gerhard Eschelbeck.